Strategic Management The Strategy Process

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Strategic Management The Strategy Process

• Prof. Dr. E.Vatchkova

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Contents

• Understanding strategy development
• Instruments for strategic analysis
• An overall strategic model
• Types of strategies

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Understanding strategy development (1)
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Understanding strategy development (2)
How strategy development can be seen

• THREE STRATEGY LENSES
• 1. Strategy as design
• 2. Strategy as experience
• 3. Strategy as ideas

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Understanding strategy development (3)
How strategy development process can be understood

• Strategic planning systems
• Strategic leadership
• Organizational politics
• Logical incrementalism
• The learning organization
• Imposed strategy

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Understanding strategy development (4)
Implications for strategy development

• Intended and realized strategy
• Strategic drift
• Strategic management in uncertainty and
  complexity

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SWOT ANALYSIS DIAGRAM
Numerous Environmental Opportunities
QUADRANT
QUADRANT
Critical Internal Weaknesses
Substantial Internal Strengths
QUADRANT V
QUADRANT
Major Environmental Treats
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Forces Affecting Industry Competition
Potential Entrants
Treat of New Entrants
Industry Competitors
Bargaining Power of Suppliers
Suppliers
Buyers
Bargaining Power of Buyers
Rivalry among Existing Firms
Treat of Substitute Products or Services
Substitutes
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Portfolio Matrix
Market Growth Rate
Stars Question Marks
Cash Cows Dogs
High
Low
Low
High
Relative Market Share
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Strategic alternative matrix
Numerous Environmental Opportunities
QUADRANT Vertical Integration Conglomerate
Diversification
QUADRANT Concentration Market
Development Product Development Innovation
Substantial Internal Strengths
Critical Internal Weaknesses
QUADRANT V Horizontal Integration Concentric
Diversification Joint Venture
QUADRANT Turnaround Divestiture Liquidation
Major Environmental Treats
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Strategies of Portfolio Types
PORTFOLIO TYPES
Stars Cash Cows Question Marks Dogs
STRATEGY Invest for rapid growth, convert to cash cow Channel revenues to stars and question marks Evaluate for future potential as star, divest reminder Divest or liquidate
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Survival Strategies and Environmental Conditions
Specialists will outperform generalists. Generalists are more likely to fail.
Generalists will outperform specialists. Specialists are more likely to fail.
Stable
Market Stability
Unstable
Heterogeneity
Homogeneity
Market Complexity
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Types of strategies (1)

• Concentration single product in a single market
  
• Market development selling present products in
  new markets
• Product development modification of existing
  product or creation of a similar one

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Types of strategies (2)

• Innovation creation of a new product based on
  the technology of a current product
• Horizontal integration acquisition of another
  organization in the same industry
• Vertical integration acquire or create
  organizations that distribute its product, supply
  materials for its product, or both

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Types of strategies (3)

• Joint venture two or more organizations
  increase their capabilities
• Concentric Diversification creating or
  acquiring organizations that manufactures or
  distribute related products
• Conglomerate Diversification creating or
  acquiring another organization that manufactures
  or distributes unrelated products

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Types of strategies (4)

• Defender strategy seeks or creates an
  environment, that is stable, protecting the
  market share
• Prospector strategy - seeks or creates an
  unstable environment in the form of rapid change
  and high growth in the market
• Analyzer strategy involves adapting solutions
  from both the defender and prospector to the
  three problems entrepreneurial, engineering and
  administrative

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Types of strategies (5)

• Turnaround correct existing problems by
  invoking techniques for improving operational
  efficiency
• Divestiture sell parts of the organization
• Liquidation acquire cash from the sale of parts
  of the company which can then be transferred to
  owner-stockholders

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Thank you !